ALL IS NOT GREEN: CLIMATE CHANGE ADAPTATION AND SMALL BUSINESS RESILIENCE IN LOW- AND MIDDLE-INCOME COUNTRIES

The document analyzes the vulnerability of MSMEs in low- and middle-income countries to physical and transition climate risks, highlighting how these risks are amplified through value chains. It identifies significant barriers to adaptation, including limited access to climate data, finance, and technical skills. The authors argue for a participatory, inclusive approach where MSMEs are not only resilient but also act as providers of adaptation goods and services, supported by state policies, large businesses, and financial institutions.

• MSMEs in low- and middle-income countries face a complex array of climate risks that are often compounded by other dynamic stressors such as unemployment, food insecurity, disease, and inadequate access to basic services.
• Climate risks for small businesses are categorized into physical risks (acute events like cyclones and chronic shifts like sea-level rise) and transition risks (policy, technology, market, and reputation risks associated with moving to a low-carbon economy).
• Climate impacts on MSMEs are not isolated but operate through value chains, where disruptions in upstream supply or downstream demand can create cascading effects across national borders.
• MSMEs are frequently hindered by a 'short-term horizon planning' approach, prioritizing immediate goals like quick profits over long-term adaptation investments, which often leads to a lack of anticipatory action.
• There is a significant global financing gap for MSMEs, with an estimated US$2 trillion shortfall, and many enterprises are unable to access loans, insurance, or venture capital due to high-risk profiles and lack of collateral.
• Adaptation is often obstructed by socio-cultural barriers, including traditional practices, risk-aversion, and negative perceptions of climate change, which can lead to resistance against new technologies.
• Many developing countries have made slow progress in implementing National Adaptation Plans (NAPs); as of 2018, only 11 out of 153 developing countries under the UNFCCC had successfully completed and submitted them.
• MSMEs have the potential to be more than just victims of climate change; they can act as 'solution providers' by producing adaptation-related goods and services, such as drought-resistant seeds or water-efficient technologies.
• Large businesses can catalyze adaptation among their smaller suppliers through procurement processes and incentives that encourage MSMEs to invest in resilience to secure supply chains.

APA

Montmasson-Clair, G., Patel, M., Mudombi, S., Jattansingh, S., Granderson, A., & Leotaud, N. (2019). ALL IS NOT GREEN: CLIMATE CHANGE ADAPTATION AND SMALL BUSINESS RESILIENCE IN LOW- AND MIDDLE-INCOME COUNTRIES. World Resources Institute. https://files.wri.org/s3fs-public/uploads/Adaptation_and_Small_Business_Resilience_Paper_-_Global_Commission_on_Adaptation.pdf

Chicago

Montmasson-Clair, Gaylor, Muhammed Patel, Shakespear Mudombi, Sasha Jattansingh, Ainka Granderson, and Nicole Leotaud. ALL IS NOT GREEN: CLIMATE CHANGE ADAPTATION AND SMALL BUSINESS RESILIENCE IN LOW- AND MIDDLE-INCOME COUNTRIES. World Resources Institute, 2019. https://files.wri.org/s3fs-public/uploads/Adaptation_and_Small_Business_Resilience_Paper_-_Global_Commission_on_Adaptation.pdf.

Wikipedia

{{cite report |last1=Montmasson-Clair |first1=Gaylor |last2=Patel |first2=Muhammed |last3=Mudombi |first3=Shakespear |last4=Jattansingh |first4=Sasha |last5=Granderson |first5=Ainka |last6=Leotaud |first6=Nicole |title=ALL IS NOT GREEN: CLIMATE CHANGE ADAPTATION AND SMALL BUSINESS RESILIENCE IN LOW- AND MIDDLE-INCOME COUNTRIES |publisher=World Resources Institute |date=2 August 2019 |url=https://files.wri.org/s3fs-public/uploads/Adaptation_and_Small_Business_Resilience_Paper_-_Global_Commission_on_Adaptation.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{montmassonclair2019all, author = {Montmasson-Clair, Gaylor and Patel, Muhammed and Mudombi, Shakespear and Jattansingh, Sasha and Granderson, Ainka and Leotaud, Nicole}, title = {{ALL IS NOT GREEN: CLIMATE CHANGE ADAPTATION AND SMALL BUSINESS RESILIENCE IN LOW- AND MIDDLE-INCOME COUNTRIES}}, institution = {World Resources Institute}, year = {2019}, month = aug, url = {https://files.wri.org/s3fs-public/uploads/Adaptation_and_Small_Business_Resilience_Paper_-_Global_Commission_on_Adaptation.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }